Indices 03/04, page-3

Good morning, my esteemed and inexperienced friends.

It was certainly a big week last week, punctuated by a torrent of cash dropping into bank accounts all round this great country, as BHP, Commbank, Wesfarmers (and others) paid their dividends.
This week and next promises the same, this time CSL, Woolworths and others.
A good time to be alive.

While I head off to the big wide world, my esteemed and inexperienced friends, ponder this:

"I realized that technical analysis didn’t work when I turned the chart upside down and didn’t get a different answer (Warren Buffett)"

Obviously, his being the most successful investor ever (by the length of the Flemington straight), he is right. (Assumed Knowledge)

But why is he right?